Answer:
Explanation:
(a) i. Payment = $7000
For cash flow payment = $750 (Per year at 5%, for 12 years)
= 750*8.863
= $6697.25
This shows it is better to receive $7000 right now.
ii. FV = $10000
PV = FV(P/F, 5%, 10 years)
= 10000*0.6139
= $6139
And Payment of $1000 per year, for 5 years
PV = 1000 (per year at 5%, for 5 years)
= $1000*7.722
= $7722
It is better to get $1000 per year for 5 years
(b)i. PV = $1000
fV = $1402.55
Interest = i
by formula
1000 = 1402.55 (p/f, i, 5)
1000 =
=
1 + i = 1.069
Collect like terms
i = 1.069 - 1
i = 0.069
i ≈ 7%
ii. PV = $166666.67
Perpetuity = 15000
interest is unknown
166666.67 = 15000/i
i = 15000/166666.67
i = 0.089
i ≈ 9%
Answer:
This statement is true.
Explanation:
A market economy can be defined as an economic system in which economic decisions is taken by the market forces. The equilibrium prices and quantity are determined by the forces of demand and supply.
Market failure happens when these forces fail to efficiently allocate goods and services in the market.
The market fails to efficiently allocate goods and resources when the individual rational decisions in self-interest lead to inefficient outcomes for society.
Answer:
D. Buyer
Explanation:
The buyer is the one who is interested in purchasing the property and becoming the new owner. A walkthrough which involves inspecting the property and making sure everything has remained stated and is in order is done by the buyer who is interested in owning the property. A buyer can always demand for a walkthrough. The walk through gives the buyer time to inspect the property before closing.
Answer:d the increase or decrease in cash flow for the period of time
Explanation:
It’s the amount gained and lost in the amount of time they were in business
B. What is the total cost at the break even point.